American Apparel Is Doing So Badly It Can't Even File a Quarterly Report
LatestDespite a restructured leadership, several rounds of layoffs and store closings, and a marketing revamp, American Apparel continues to suffer extreme financial losses.
The ailing company filed a notice with the SEC Wednesday concerning the delay of its quarterly report, explaining that management is wrapped up in negotiations with lender Capital One. They reported that the company lost approximately $19 million in the last quarter, with quarterly sales falling to about $134 million. The retailer announced that it doesn’t have enough money to get through the next year, and will need to explore new options for financing.
American Apparel has lost money every year since 2010, but according to Bloomberg, “While the company was losing money under Charney, the losses and the stock decline have accelerated since his departure. The shares sank to as low as 10 cents on Wednesday. They had already fallen 80 percent this year.”